Top 10 Reasons Mid-Sized Companies Outsource to MSPs: Faster Delivery, Lower Costs, Better Results

project portfolio management office leadership

Access to Specialized Expertise

  • Organizations often lack in-house skills for complex functions. MSPs provide deep, domain-specific talent that’s difficult or expensive to build internally.
  • Deloitte’s Global Outsourcing Survey 2022 notes that 50% of executives see talent acquisition as a leading challenge in meeting their organization’s strategic priorities. Deloitte United States

MSPs offer cost-effective services through economies of scale,
optimized delivery models, and capacity-based pricing.

Deloite Global Outsourcing Survey Results 2024

Cost Control and Predictability

  • Outsourcing shifts fixed costs to variable ones. MSPs offer cost-effective services through economies of scale, optimized delivery models, and capacity-based pricing.
  • Gartner emphasizes that strategic IT cost optimization involves identifying areas of excess and reducing spend that no longer contributes to key business outcomes. Gartner

Speed to Value

  • MSPs can deploy ready-to-go resources, frameworks, and tooling much faster than internal ramp-up timelines, accelerating delivery and results.
  • McKinsey reports that responses to COVID-19 have accelerated the adoption of digital technologies by several years, highlighting the need for speed in digital transformation. McKinsey & Company

Focus on Core Business

  • By offloading non-core functions, internal teams can concentrate on innovation, customer service, or strategic growth.
  • EY discusses how co-sourcing tax and finance operations can reduce time spent on compliance tasks, allowing more internal resources to focus on core business needs. EY US

Scalability and Flexibility

  • MSPs allow businesses to scale operations up or down without the friction of hiring, training, or layoffs. This is especially valuable during periods of change or uncertainty.
  • IDC highlights the importance of dynamic scaling as a key advantage of managed services in their Future of Digital Infrastructure predictions. IDC Blog

Improved Service Quality and SLAs

  • MSPs operate under formal Service Level Agreements (SLAs), bringing a level of accountability and performance tracking not always present internally.
  • ISG Provider Lens reports that outsourced operations often outperform internal ones on uptime, responsiveness, and compliance. IDC

Technology Modernization

  • MSPs bring the latest platforms, tools, and automation capabilities, helping companies modernize faster than they could alone.
  • Gartner discusses how emerging technologies and trends can disrupt markets, emphasizing the role of MSPs in technology modernization. Gartner

Risk Reduction

  • MSPs help distribute and manage operational, compliance, and delivery risks—particularly during major initiatives like M&A, cloud migrations, or regulatory transitions.
  • KPMG emphasizes the importance of third-party risk management in ensuring that third-party providers are a source of strength for businesses. KPMG

Enhanced Governance and Reporting

  • Mature MSPs bring robust governance frameworks, real-time dashboards, and portfolio-level oversight—capabilities many mid-sized companies lack internally.
  • PMI’s Pulse of the Profession 2023 indicates that organizations placing a higher value on power skills tend to perform significantly better on multiple key drivers of success. PMI

Outcome-Based Delivery

Deloitte reports a significant shift toward outcome-based contracting in outsourcing models over the last three years.

Unlike staff augmentation, MSPs commit to delivering outcomes—such as completed projects, reduced backlog, or business transformation milestones—which better aligns with executive goals.

Outcome-Based Delivery

Unlike staff augmentation, MSPs commit to delivering outcomes—such as completed projects, reduced backlog, or business transformation milestones—which better aligns with executive goals.

  • Deloitte reports a significant shift toward outcome-based contracting in outsourcing models over the last three years. Deloitte USA

Final Consideration

Outsourcing the Project Portfolio Management Office (PPMO) function to a Managed Service Provider (MSP) offers mid-sized and enterprise organizations a strategic lever to accelerate execution, reduce overhead, and gain visibility across complex initiatives—without the burden of building internal capabilities from scratch. The evidence is clear: companies are turning to MSPs not just to cut costs, but to access specialized expertise, achieve faster results, and align execution with strategic priorities.

Unlike traditional PMO models that often struggle with inconsistent delivery, poor governance, and limited influence, a fully managed PPMO brings outcome-based accountability, enterprise-wide transparency, and the operational muscle to turn strategy into results. It enables organizations to focus on what matters most—innovation, growth, and competitive advantage—while ensuring that every initiative in the portfolio delivers value.

In a business environment where speed, clarity, and execution discipline are non-negotiable, outsourcing PPMO to a trusted MSP isn’t just a tactical fix—it’s a competitive advantage.